Satyam announces bidding process

HYDERABAD, INDIA: Satyam Computer Services announced today that it was commencing a competitive bidding process which contemplates the selection of an investor to acquire 51 per cent stake in the outsourcing company.

Interested bidders will be asked to submit a detailed expression of interest and the proof of availability of at least 15 billion rupees ($290 million) by March 20, Satyam said in a statement given to the Bombay Stock Exchange (BSE).

The acquisition is expected to occur after the selected investor makes an initial subscription of 31 per cent of the company’s share capital after giving effect to the share issuance, it said.

Satyam had received on Friday the approval from market regulator Securities and Exchange Board of India (SEBI) to facilitate a global competitive bidding process to sell 51 per cent interest in the company.

Following the multi-crore financial scandal that had tarnished the image of the outsourcing company, the Government of India had appointed a new board of directors, which is now looking for a buyer to help restore the confidence of its staff and customers.

Meanwhile, a Reuters report said that Indian engineering and construction firm Larsen & Toubro Ltd has decided to will go ahead with a bid for Satyam Computer Services Ltd.

"We expect to go ahead with the bid," Reuters quoted L&T spokesman D. Morada as saying. "The bid price has no relation to the market price."